Country A is currently experiencing a balanced budget in a normal cycle. The government in country A is in charge of undertaking different policies to prevent a predictable recession in future.

(a) Suppose the government offers a stimulus package to prevent the recession. Describe how this stimulus package could prevent the recession and would it necessarily work well?

(b) Now suppose there is a Country B that trades with Country A. In particular, Country A imports some products from Country B. What would be the effects on trade between the two countries as a result of the policy in part (a)?

(c) How would the unemployment in Country A change due to the policy in part (a)?